Real estate industry

Word play

Article Abstract:

It is vital that there is common understanding of the terms worth, price and value if effective property valuation is to be undertaken. Worth can be interpreted as a particular investor's view of the capital sum it is appropriate to pay for the benefits anticipated from the investment. Price is the actual exchange price in the open market, while value is an assessment of the price the property would command if it were sold in the market. Value should always be linked with price rather than worth. Furthermore, a valuation figure must always be placed in an economic context.

Property - love it or leave it?

Article Abstract:

Fund managers tend to see property as a fixed-interest-type investment similar to gilts, according to a review of investors' expectations for property commissioned by the Investment Property Forum. The total annual nominal real estate return expected during 1994-1995 was 16.52%, with signs of a growing confidence in the property market in the form of increasing capital values. Those surveyed generally expected property to offer relatively low capital returns and a very low variation in total returns.

Putting a value on property

Article Abstract:

It is becoming increasingly common in the UK for landlords to reject the valuation of premises by premises. They are focusing on realizing value, a process in which the concept of profit-sharing with tenants appears to predominate.